What is Cloud Mining?

Cloud (or remote) mining – is the process of using hardware power to mine cryptocurrency (such as
Bitcoin or Litecoin) remotely. This mining model came to existence due to the fact that the
increasing difficulty of mining has made it unprofitable for mining enthusiasts to mine Bitcoins at
home.

Cloud mining gives people a unique opportunity to begin mining cryptocurrency without the need for a
large initial investment in hardware or technical knowledge. Despite the simplicity of the cloud
mining model, it is worth elaborating on a few details, specifically it’s important to highlight
that remote mining comes in two forms: hosted or cloud based mining.

Remote Hosted Mining

The first form of remote mining is remote hosting. This model suits users with a high level mining
experience and know-how and who require a high degree of control over their mining hardware. Under
this model, the mining hardware is hosted in a remote datacentre and the user assumes full control
over the setup and configuration of the mining hardware. Under this model, the miner pays a fee to
the hosting company that would cover maintenance and electricity costs. This helps the miner handle
the risks associated with maintenance of the kit as well as any risks with the shipment of the
hardware. On the other hand, it presents the miner with risk on the initial hardware investment and
requires much more time and technical knowledge to implement successfully.

It can therefore be summarised that the benefits of remote hosted mining are tight control over the
mining process, maintenance support and subsequent ownership of the hardware. The big drawbacks are
risks associated with the procurement of expensive hardware and the very high cost of entry, both in
terms of investment and technical experience.

Cloud Mining

The second, and more accessible model of remote mining is Cloud Mining, whereby a miner purchases a
part of the mining power of hardware hosted and owned by a Cloud Mining services provider. The
service provider takes on configuring the hardware, maintaining uptime and selecting the most
efficient and reliable pools.

This option provides a range of benefits: instant connection (meaning no hardware shipment wait
times and delivery risks), fixed maintenance and electricity fees and no nuisances associated with
mining at home such as noise, heat or space. Another key point is that this model of cloud mining
requires no technical experience. Obviously, it’s very important that miners understand the mining
process, however this model doesn’t require hardware expertise or significant configuration /
implementation cost. Since customers can purchase any amount of mining power they wish, this means
that the level of investment will depend only on the miners’ ambition. This means that the cost of
entry and subsequent risk is far lower than in comparison with the remotely hosted model.

HashFlare is happy to be offering its new cloud mining services range. We guarantee an instant
connection, around-the-clock access and monitoring, an easy-to-use management interface, 24/7 uptime
as well as daily payouts.

Cloud mining is greatly suited for novice miners who would like to try out mining and earning
cryptocurrency as well as seasoned miners who don’t want the hassle or risks of hosted or home-based
mining.